Table 17-8 For a Certain Small Town, the Table Shows the Demand

question 410

Multiple Choice

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there are two suppliers of water, Victor and Sami, and if they have successfully formed a cartel, then what would be the price and the market quantity?

• A)The price would be $7 per bottle and the market quantity would be 600 bottles.
• B)The price would be $6 per bottle and the market quantity would be 800 bottles.
• C)The price would be $5 per bottle and the market quantity would be 1000 bottles.
• D)The price would be $4 per bottle and the market quantity would be 1200 bottles.

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Definitions:

Chi-square Distribution

A probability distribution that is used to analyze the variance in categorical data between observed and expected outcomes.

Population Variance

A measure of how data points in an entire population are dispersed or spread out from the mean, indicating the level of diversity within the population.

Confidence Interval

A collection of numbers, sourced from sample data, presumed to contain the value of an undiscovered population characteristic.

Population Variance

The variance of a population data set, calculating the mean of the squared deviations from the mean of the data.